Forex Access: Airline operator seeks special policies to sustain aviation industry
By Kingsley Okoye
Prof. Obiora Okonkwo, Chairman, United Nigeria Airlines Company, has urged the Federal Government to consider aviation industry a critical sector by making deliberate policies for a single digit loan and access to foreign exchange by operators.
Okonkwo made the call in Abuja on Thursday at the 3rd annual management and staff retreat of the company.
He said the call became necessary given the importance of the sector to the development and growth of the nation’s economy.
He said airline operators in the country were doing everything possible to keep services going in spite of the challenges in the sector.
Okonkwo said: “We are now asking the government to make certain critical policy decisions for the industry such as single digit loan, access to forex and then we can take care of the rest.
“Aviation sector is critical, we are calling on government to seize this opportunity now, that it should be considered along all other critical sectors like agriculture and land transport.
“It is a catalyst for economic development and growth, and operators are losing money, and there’s so much we can observe.
“The mortality rate has been high in the last 10 years; we have stabilised this industry in Nigeria to the envy of the world.”
Okonkwo said that sales of tickets were key for operators in the industry, saying that they were concerned that tickets did not go beyond the reach of Nigerians, given the current economic reality.
“The danger we have here in the aviation sector is that the only thing you have to sell to make money, to operate, to pay for the fuel, to pay for other service providers is ticket.
“Every other person in the aviation eco system is supported by the ticket.
“We are very concerned that you want to benchmark your ticket over or above within the range of dollar; there is an extent you will get because you will be flying empty .
“Our profit is not in the number we sell, but it is in the number of passengers and the average tickets that we are able to put together.
“We are worried, we don’t want these tickets to grow out of the reach of majority of Nigerians; we are really concerned and so don’t know how this will go.
“For the past two months, we have had about 30 per cent of reduction of capacity equipment in Nigeria and if care is not taken, in the next one month, up to 50 per cent of the aircraft should be out of service.
This is not because the operators don’t want to fly, but because it is impossible for them to keep it flying.
“And when that happens, people will loose their jobs, why, probably those who have loans with the bank may not be able to pay, and the income which you receive from tickets will reduce, no body gains from that.”
Okonkwo said in spite of the challenges in the sector, United Nigeria Airlines was blazing the trail in three years of its operation.
He said the issue of access to forex was a major challenge, but the United Nigeria Airline had continued to grow.
This is made possible by the Grace of God, and commitment of the management and staff of the airline.
The retreat would avail members of staff the opportunity to assess how the company had faired so far and work toward further attainment of the visions of United Nigeria Airline.
He urged Nigerians to remain united as a nation in spite of the challenges, expressing optimism that the nation would overcome its challenges.
On flight delays, Okonkwo said the only contract with the passenger was to take them to their destinations, saying that the operators go through a lot to give passengers satisfaction.
He said when there were delays, the biggest loser remained the operator as there was an obligation to be made by the operator.
Okonkwo called on the airport authorities to live up to their responsibilities, saying that flight delays most times were not the making of the operator. (NAN)(www.nannews.ng)
=============
Edited by Idris Abdulrahman
Published By
Has also recently published
General NewsJune 27, 2024Nigeria requires N348trn to address infrastructure deficit -ICRC D-G
BusinessJune 26, 2024Ways and means securitisation responsible for N24trn debt rise – DMO
SportsJune 26, 2024Paris Olympics: We’re ready to surpass previous achievements – NOC
Defence/SecurityJune 26, 2024Recruitment: Okiro urges harmony between PSC, Police
